On August 1, SEKISUI CHEMICAL CO., LTD. (President: Naofumi Negishi; hereinafter called "Sekisui Chemical") established a headquarters in the city of Delhi, India, and founded a joint venture company with an ownership ratio of Sekisui Chemical 51%, and the local injection mold manufacturer and sales company Dipty Lal Judge Mal Private Limited (hereinafter called "DLJM") 49%. This is expected to the expand vehicle components molding business. This is the first time that a Sekisui Chemical Group's manufacturing base has made inroads into India.
Further, the operating body of the new joint venture company will be supervised by SEKISUI TECHNO MOLDING CO., LTD. (President: Mikiya Idehara; hereinafter called "Techno Molding"), which is a 100% subsidiary company of Sekisui Chemical.
Further, the operating body of the new joint venture company will be supervised by SEKISUI TECHNO MOLDING CO., LTD. (President: Mikiya Idehara; hereinafter called "Techno Molding"), which is a 100% subsidiary company of Sekisui Chemical.
1. Background
In the AT (Automotive materials) field, which is one of the strategic business fields of High Performance Plastics Company, injection molding is one of the main businesses. The AT field aims to enter and strengthen emerging markets such as India, and this inroad into India is a foothold for this, and is the first inroad outside Japan for the injection molding business.
The vehicle components molding business has been influenced by the stagnation of vehicle production numbers within Japan and the transfer of production overseas by vehicle manufacturers since the financial crisis of 2008, and since 2009, orders, mostly centering on two-wheeled vehicle field, have fallen, and this trend is forecast to continue in the future.
Meanwhile, making these inroads into India on this occasion also indicates a solid increase in the number of vehicles manufactured (both four-wheeled and two-wheeled) concomitant with the invigoration of the Indian economy overall, with the prospect of major growth in the future. Further, Japanese vehicle manufacturers who have made inroads into India also plan to expand their share, and inroads by Japanese components manufacturers have also been expected.
In Japan, Techno Molding plans to strengthen its relationship with the main manufacturers, and has advanced the expansion of the business. By cooperating with manufacturers from the product planning and design stages, Techno Molding has come to respond speedily and with high quality to needs such as greater lightweight using core injection molding technology.
DLJM continues to grow smoothly in the fields of home appliances and vehicle components as an injection mold manufacturer and sales company, and in the field of vehicle components in particular, has a proven track record of delivering to Japanese manufacturers, and is planning to expand deliveries further in the future.
In the AT (Automotive materials) field, which is one of the strategic business fields of High Performance Plastics Company, injection molding is one of the main businesses. The AT field aims to enter and strengthen emerging markets such as India, and this inroad into India is a foothold for this, and is the first inroad outside Japan for the injection molding business.
The vehicle components molding business has been influenced by the stagnation of vehicle production numbers within Japan and the transfer of production overseas by vehicle manufacturers since the financial crisis of 2008, and since 2009, orders, mostly centering on two-wheeled vehicle field, have fallen, and this trend is forecast to continue in the future.
Meanwhile, making these inroads into India on this occasion also indicates a solid increase in the number of vehicles manufactured (both four-wheeled and two-wheeled) concomitant with the invigoration of the Indian economy overall, with the prospect of major growth in the future. Further, Japanese vehicle manufacturers who have made inroads into India also plan to expand their share, and inroads by Japanese components manufacturers have also been expected.
In Japan, Techno Molding plans to strengthen its relationship with the main manufacturers, and has advanced the expansion of the business. By cooperating with manufacturers from the product planning and design stages, Techno Molding has come to respond speedily and with high quality to needs such as greater lightweight using core injection molding technology.
DLJM continues to grow smoothly in the fields of home appliances and vehicle components as an injection mold manufacturer and sales company, and in the field of vehicle components in particular, has a proven track record of delivering to Japanese manufacturers, and is planning to expand deliveries further in the future.
2. Purpose of Establishing the Joint Venture
Within India, trade with Japanese two-wheeled vehicle manufacturers is expanding, and in the future, four-wheeled vehicle will also set their sights and are going to act.
Within India, trade with Japanese two-wheeled vehicle manufacturers is expanding, and in the future, four-wheeled vehicle will also set their sights and are going to act.
| 1) | Within India, trade with Japanese two-wheeled vehicle manufacturers is expanding, and in the future, four-wheeled vehicle will also set their sights and are going to act. |
| 2) | To promote sales centering on Japanese manufacturers in India, by adding the proven track record for production and sales by DLJM locally, and the trust of Japanese manufacturers in Techno Molding's quality and technology. |
| 3) | To accelerate the development outside Japan of the vehicle components molding business. |
3. Business Objectives
Production and sales start in August 2011, with the aim of sales reaching three billion yen by FY2013.
Production and sales start in August 2011, with the aim of sales reaching three billion yen by FY2013.
4. Overview of the Joint Venture Companies
| 1) | Company Name | : | Sekisui DLJM Molding Private Limited |
| 2) | Investment Ratio | : | 51% by Sekisui Chemical, 49% by DLJM |
| 3) | Established | : | August 1, 2011 |
| 4) | Business Description | : | Injection mold production and sales (vehicle components field) |
| 5) | Capital | : | 1 million rupees (Note: Converted using 1 rupee= 2 yen) |
| 6) | Location | : | Delhi, India |
| 7) | Production Base | : | Two (Uttar Pradesh and Rajasthan) |
| 8) | Employees | : | Approximately 230 |
References(1) Overview of DLJM
| 1) | Company Name | : | Dipty Lal Judge Mal Private Limited |
| 2) | Representative | : | Dev Bhushan Jain |
| 3) | Business Description | : | Injection mold production and sales (relating to home appliances and vehicle components) |
| 4) | Established | : | 1984 |
| 5) | Capital | : | 45 million yen |
| 6) | Employees | : | Approximately 860 (as of August 1, 2011) |
| 7) | Sales | : | 3.7 billion yen (FY2010) |
References(2) Overview of Techno Molding
| 1) | Company Name | : | SEKISUI TECHNO MOLDING CO., LTD. |
| 2) | Representative | : | Mikiya Idehara |
| 3) | Business Description | : | Injection mold production and sales (relating to vehicle components and their distribution, the environment, and civil engineering) |
| 4) | Established | : | 1962 |
| 5) | Capital | : | 200 million yen |
| 6) | Employees | : | 123 (as of April 1, 2011) |
| 7) | Sales | : | 11.7 billion yen (FY2010) |
 Rajasthan Plant |
 Product Handled: Fenders for two-wheeled vehicle |
Disclaimer
This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.
This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.